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Russian tourists are attracted by Fuwa, Beijing Olympic mascots at a licensed store in North China's Hebei Province. [File Photo]

"We hope to launch overseas sales of our licensed products as soon as possible," Tang said.

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Beijing 2008 licensed stores have already opened in Macao.

These moves are just the first step for Beijing's International Licensing Programme, Tang said. "The full programme will be started from the beginning of next year. We will start with some countries that have mature market conditions."

BOCOG is currently looking for local abroad dealers to manufacture and sell the product. "We are doing marketing research right now and since the marketing conditions are different from country to country, we may invite professional agencies to find local dealers for us," Tang said.

This October, the English name of the Beijing Olympic mascots was changed from "Friendlies" to Fuwa, as it is literally pronounced in Chinese and thus true to its Chineseness.

BOCOG said the reason to change the English name to the pinyin form is that "Fuwa" is more accessible and easy to remember, so it will be a better name to promote the five mascots. But many foreigners thought the name in Chinese pinyin means nothing to them, which raised doubts of whether the change of name would affect the promotion of the mascots, especially the sale of the licensed products.

Tang denied such concerns.

"I don't think the name change of the mascots will affect the sales of the licensed mascots products to foreigners," he said. "'Fuwa' is easy for foreigners to pronounce and it has more Chinese characteristics. I believe foreign consumers will feel the Chinese culture in it, which makes it accessible to them."

Brisk markets

The trial stage of the Beijing 2008 Licensing Programme was started in August 2004. During the one-year trial, over 600 kinds of licensed products hit the market and sales volume reached more than 600 million yuan (US$76.9 million).

On November 2, 2005, the Beijing 2008 Licensing Programme was officially launched.

Up to now, about 50 manufacturing licensees and 40 retailers have been selected. Approximately 4,000 kinds of products in eight categories are being sold in nearly 510 licensed stores across the country.

With the Christmas and New Year holidays coming nearer, a group of new products just hit the market recently, including "Five Blessings Olympic Games Golds", new types of mascots toys, necklace and rings.

Tang said the last group of licensed manufacturing and retail companies are being evaluated right now. By the end of this year, the collection of all the licensees and retailers will be concluded with altogether about 70 manufacturing and 80 retail companies being chosen.

"By the end of this year, licensed stores will be opened in all the provinces and cities across China," Tang said. "The aim of the development of the licensed stores is to let as many common people as possible buy the products conveniently.

"During the Games, there will be nearly 10,000 licensed stores or counters all over the country. The licensed products will also be sold in many other places, like post offices, gas stations and grocery stores."

In order to let more people get access to the Olympic licensed products, the BOCOG has offered affordable prices for the products.

"The prices of Olympic products should be in line with the condition of the host country, so in order to attract common people, the prices of the Beijing Olympic licensed products are much lower than in previous Games," Tang said.

Take the prices for the most popular licensed products: badges. The average price for a badge at the 2004 Athens Games was 7.9 euros (US$10). At the Beijing Games, the average price will be 25 yuan (US$3.2).

"In the early stage of the licensing programme, we developed some products with prices in the middle level or above," Tang said. "In future stages, we will produce even cheaper products."

Although prices will be low for licensed products, Tang is confident it won't affect the whole income of the marketing plan and profits from the licensed products will surpass those in the last Games.

"The Licensing Programme only covers about two to three per cent of the whole marketing plan, so when we made the licensing programme, making profit was not the key point, but promoting the Olympic culture, brand and concepts to more people through the products," Tang said.

"As for prices of products that are sold in other countries, BOCOG won't limit the price range strictly, but let local retailers decide according to their consumers' affordability."

According to reports, income from the licensing programme at the recent Games have all exceeded US$500 million, covering about ten per cent of the total income of the Games.

At the 2004 Athens Games, there were about 7,600 retail stores for the licensed products and the total sale volume reached more than 700 million euros (US$897.3 million).

"Although the prices are lower for our products than in the previous Games, , we are confident that a large quantity of the products will be sold out and the total income will surpass that of the Athens Games," Tang said.